INSIGHT-Future of U.S. solar threatened in nationwide fight over incentives

Los Angeles March 1 (Reuters) - Two sun-drenched U.S. states
have lately come to very different conclusions on a
controversial solar power incentive essential to the industry's
growth.

In California, regulators voted in January to preserve
so-called net metering, which requires utilities to purchase
surplus power generated by customers with rooftop solar panels.
But neighboring Nevada scrapped the policy - prompting solar
companies to flee the state.

The decisions foreshadow an intensifying national debate
over public support that the rooftop solar industry says it
can't live without.

"Without net metering, it just doesn't work," said Lyndon
Rive, chief executive of top U.S. residential solar installer
SolarCity Corp.

More than 25 of the 40 U.S. states with net metering
policies are reconsidering them, according to the North Carolina
Clean Energy Technology Center at North Carolina State
University.

Opponents raise fairness concerns and argue that the
industry no longer needs generous incentives, citing its rapid
growth and solar panel prices that have fallen about 40 percent
in five years.

Net metering credits solar users - at full retail rates -
for any surplus power their panels generate above household
usage. That means many customers pay no monthly utility bill or
even rack up excess credits, which they can redeem later in
months when their systems produce less power than their home
uses.

For most customers, net metering and other incentives are
essential to make solar power worth the steep upfront investment
- between $17,000 and $24,000 for a typical system, according to
data from research firm GTM Research. For systems that are
leased, as most are, net metering creates a monthly savings over
typical power costs.
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